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RootSystems manutsctures an optcal switch that it uses in as feal product RootSystems RootSystems does not yet know how many swiches it will neod this
RootSystems manutsctures an optcal switch that it uses in as feal product RootSystems RootSystems does not yet know how many swiches it will neod this year, however, incured the following manutacturing costs when it produted 66,000 units last year: another company has oflered to sell RootSystems the switch for $11.00 per unt. If fCick the ioon to view the manulacturing costs? RoolSytiems buys the swtch trom the cutside supplec, the manufacturng fociles that wal be idie cannot be used for any othet purpose, yot none of the fxed costs are Read the tesurements avodabin Requirement 1. Given the same cont structure, should Roor5ystems make of buy the switch? Show your analysis. Complete an incremental analysis to show whether RootSystems should inake or buy the switch. (Enter a "0- for any zare amounts. Round amounts to the neareat cent. Use a minus sign or parentheses when the cost to buy exceess the coat to make) Data table Requirements 1. Given the same cost structure, should RootSystems make or buy the switch? Show your analysis. 2. Now, assume that RootSystems can avoid $97,000 of fixed costs a year by outsourcing production. In addition, because sales are increasing, RootSystems needs. 71,000 switches a year rather than 66,000 switches. What should the company do now? 3. Given the last scenario, what is the most RootSystems would be willing to pay to outsource the switches
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